January 2009 - Posts - Simple Equation

January 2009 - Posts

The Five Investment Essentials

Posted by Harish Rao at 
With the tax saving season upon us, a friend of mine had earlier asked me what the five best tax-saving investments were. I frankly knew no more than two. But I did give him a list of 5 investment ideas that I thought were appropriate for him. But to start on the journey towards successful investing, there is one important thing that needs to be done...

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Real Estate and the Corrupt

Posted by Harish Rao at 
Yet another set of government officials have been raided by the Lok Ayukta. And the haul is depressingly familiar - apartments, farm houses, multiple sites and commercial complexes. (Read here). It is this love for Real Estate that the corrupt have, which makes this asset class one of the most queasy to own. A pity since in most parts of the world,...

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Bleak outlook, Uncertain future, Worried fund managers : Great time for equities

Posted by Harish Rao at 
This seems an odd time to evangelise about equities. The stockmarket stands discredited because of a Satyam. The collapse in stock prices has made most investors nervous. Sectors like automobiles, real estate and commodities are expected to report adverse results. It would be foolish to expect the stockmarket to turnaround soon. In fact, in one of my...

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Jeevan Aastha : What a bad idea, sirji

Posted by Harish Rao at 
Few investment products have generated as much buzz as LIC's Jeevan Aastha has. This is quite a mystery as it is essentially a very mediocre product. What is Jeevan Aastha all about : a. Single premium policy from LIC b. Combines the benefit of a FD with insurance c. Guaranteed returns with Loyalty additions d. 5 year or 10 year term e. Tax rebate...

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Rise of the Confusopoly

Posted by Harish Rao at 
Monopoly. Duopoly. Oligopoly. Standard economic terms. Most definitely you have heard of them and know what they mean. Confusopoly. Now what is that? It's a gem from Scott Adams , creator of Dilbert. In his ‘The Dilbert Future', Adams talks about Confusopolies. His official definition : A group of companies with similar products who intentionally...

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Short Term Income Funds – A good option now

Posted by Harish Rao at 
Consider the following scenarios : a. You kept aside some funds for buying a house, but have deferred it given the uncertainty. The funds are idling in your bank. b. Your savings are steadily accumulating in the bank as your risk appetite has deserted you and you have stopped investing in equity. c. You have made windfall gains over the past 6 months...

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Selling the Sizzle, the Insurance Way

Posted by Harish Rao at 
Happy New Year Folks. Sell the sizzle, not the steak - Elmer Wheeler This depression era sales aphorism seems to be the main inspiration behind many advertising campaigns in India. However, Jeremy Bullmore, a member of WPP's Advisory Board and a former Chairman of the Advertising Association feels that the time may have come to douse the sizzle...

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